July 2001 -- Susan McDougal was a close friend and business partner of Bill and Hillary Clinton at Madison Guaranty Savings and Loan while Bill Clinton was governor of Arkansas. Hillary was also a lawyer for Madison, which ended up costing US taxpayers over $70,000,000. McDougal was convicted of felony fraud in connection with the Whitewater scandal. She also refused to testify for Ken Starr's Whitewater grand jury and consequently spent nearly two years in prison for contempt of court. She was eventually released for medical reasons, and she was pardoned by Clinton on his last day in office -- along with several other unrepentant criminals and fugitives.
Susan McDougal was convicted of, among other things, fraudulent misuse of a government-backed business loan of $300,000. McDougal refused to say whether Clinton had used his influence as governor of Arkansas to help her get the bogus loan, or whether he had testified truthfully at her 1996 trial, where he denied any knowledge of the loan. The president's testimony was contradicted by David Hale, who had obtained the loan for McDougal, and later by her own husband, Jim McDougal. When she was later tried for obstruction of justice, she was asked about a check for $5081.82 she had written in 1993, payable to Madison Guaranty, on which she had written "Payoff Clinton" in her own handwriting. She answered that the check was for a land purchase in Clinton, Arkansas! Her records, however, showed a payment to "B. Clinton" for the exact amount of $5081.82.
The Whitewater scandal was a huge legal mess, and Susan McDougal's role in it is both central and highly controversial. She is regarded by Clinton's critics as a criminal who covered for illegal activity by Clinton that could have cost him the presidency. Clinton's supporters, on the other hand, consider McDougal a persecuted martyr who sacrificed her own freedom to protect a good president from a politically motivated witch hunt. She may be the only convicted felon in history who is given a regular forum on national television to chastise her prosecutor, and she does so with a vengeance -- often without even being identified as a convicted felon. Clearly, Clinton's supporters and detractors cannot both be right.
When asked why she refused to testify for Starr's grand jury, McDougal claims that Starr tried to force her to lie about the Clintons to advance his case for impeachment, and she simply refused to cooperate. This claim is widely accepted by Clinton's supporters, but can it possibly be true? Could Starr have had McDougal thrown in jail for refusing to lie for him under oath? No, he could not, and anyone with a basic understanding of the law should know that he could not -- regardless of any other facts of the case. Starr could, of course, try to pressure or persuade her to testify against Clinton if he had other corroborating evidence. However, Starr could not possibly have had McDougal thrown in prison for refusing to testify to his satisfaction.
The Fifth Amendment gives defendants the right to refuse to testify, of course. But Susan McDougal was given immunity by Starr, hence she was no longer in further legal jeopardy herself and could be legally compelled to testify, as happens routinely. If the truth would have exonerated Clinton, McDougal had absolutely no legitimate reason to refuse to testify. None whatsoever. Zip. The fact that she refused to testify can mean only that the truth was damaging to Clinton, and she wanted to protect him. There is simply no other possibility. Her claim that Starr somehow tried to force her to lie under oath, and had her imprisoned for not doing so, makes no sense whatsoever.
What makes this story so amazing is that so many Democrats and pundits are willing to swallow McDougal's transparent lies whole. Some even praise her -- a convicted felon who defrauded the US taxpayer of at least $300,000. They are apparently willing to believe anything to maintain the myth that Clinton was just a nice guy who was perpetually hounded by partisan Republicans. They are pathologically detached either from reality or from any concern for ethics -- except as a tool to use against Republicans, of course. Their defense of Clinton is that he "survived" more investigation than any other US president in history. He must be innocent because he got away with it, in other words. Never mind that he "got away with it" precisely because they spun like tops for him, dredging up every excuse in the book, including a strong economy.
Susan McDougal, pardoned fraud, is a perfect symbol for the entire Clinton presidency. She managed to cover for the Clintons, and she got away with absurd excuses for refusing to cooperate with a federal grand jury. Like Clinton, she arrogantly considered herself above the law. She has now been pardoned by the very suspect she covered for, and her connections virtually guarantee her a comfortable lifestyle for the rest of her life. She has an open invitation to go on the Geraldo show whenever she wishes to continue slandering Ken Starr, while Starr refuses to stoop to her level to defend himself. Just imagine what a great time she and Bill will have when they get together to talk about what they got away with! Move over Hillary -- Susan McDougal may be Bill's favorite partner in crime.